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When the alternative is a game that inevitably becomes way too easy towards the end, I don't mind levelling. It also gives you an incentive to specialize your character and really think about where you are putting your points and which skills you are working on.
And like Jon says, it actually helps with the open endedness of the game and allows you to do interesting stuff at the beginning rather than having to either stick to the main plot or find things to do that won't get you killed in a matter of seconds
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